Even in these modern times, talking to our family about tax possibly due on our estate when we are gone can be uncomfortable. However, considering the current tax rate of 40% in 2020 (beyond the available nil rate bands) few families inheriting estates with Inheritance Tax (IHT) due can afford not to plan.
With the current vast and hugely varied range of solutions available via qualified professionals, what some have deemed as the dreaded ‘death tax’ can be reduced or negated with careful planning.
Let us look at our client ‘Stanley’, aged 70.
Before receiving advice upon death, the family will be faced with:
Stanley received holistic advice from a specialist at WH Ireland including:
After planning received via WH Ireland Stanley then passes away just over 2 years later. Let us assume the IHT investment has grown by 6% net of fees.
The family are now faced with:
The current Inheritance Tax legislation could change and IHT investments such as BPR/AIM need to be held for 2 years minimum, then retained until death. It is important to note that you can only carry forward one year’s unused annual exemption of £3,000. The above scenario also assumes £200,000 life insurance is received by the beneficiaries.
If you have any questions about any of our services please contact your investment manager or click here to find out more.
WANT TO KNOW MORE ABOUT THIS SERVICE?
Join our upcoming webinar on 11 NOVEMBER:
‘Keeping it in the family: How can I increase the wealth I pass to my loved ones?’
Join Phil Sidebottom from our Financial Planning team alongside Stephen Patch from law firm Shoosmiths and hear about the possible options available to mitigate Inheritance Tax.
Register at: whirelandplc.com/webinar